The State-owned Oil and Natural Gas Corporation Limited (ONGC) announced plans to create a mammoth 45.5 million tons (mt) refining capacity at a cost of USD 12.5 billion that will spur it closer to its vision of being a global player by 2009-10. The new Special Economic Zone (SEZ) at Mangalore will see USD 6 billion of this investment. In addition the Mangalore facility will see another USD 1.7 billion to upgrade its 9.69 mt ton capacity to 15 mt.
ONGC plans to invest another USD 2.02 billion in two 7.5mt refineries in Kakinada, Andhra Pradesh and Barmer, Rajasthan. It will spend another USD 1.7 billion to upgrade existing facilities and kick off three other private-public partnership refineries.
The company has already invested USD 8.988 billion in exploration and production in the last five years and this additional investment will propel it to be a global player in both upstream and downstream segments.